Which of the Following Items Would Appear in a Management

question 48

Multiple Choice

Which of the following items would appear in a management letter of representation?

• A)That a physical inventory was taken,and properly valued.
• B)That the control systems are operating effectively.
• C)That management has adequate insurance to ensure its ongoing operations.
• D)That all financial records and related data were made available to the auditors.

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Definitions:

Cash

Cash refers to company-held currency and bank account balances that are readily available for use.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered but not yet paid for.

Accounting Equation

A fundamental principle in accounting that states assets equal liabilities plus owner's equity.